Stockpile more of your company plan benefits — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily

Stockpile more of your company plan benefits

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in Small Business Tax,Small Business Tax Deduction Strategies

All of a sudden, the retirement nest egg you’ve been building all these years might not be enough. And you probably have less time left to make up for lost ground than most of your other employees. That’s especially true if you haven’t been able to max out on plan contributions in the past.

Strategy: Add an “age-weighted” feature to a profit-sharing plan. This feature allocates a higher percentage of plan contributions based on age.

Assuming you’re one of the oldest employees in the plan, if not the oldest, you can keep the bulk of the retirement benefits for yourself.

Here’s the whole story: The same rules that apply to regular profit-sharing plans generally apply to plans using the age-weighted feature. The plan can have a discretionary plan formula that provides more flexibility than usual, and you can even choose to skip contributions completely in a down year. Because the age of employees is factored into the...(register to read more)

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